Kolo uses a custodial wallet system with two main components:
Hot Wallet (Omnibus Account) A central wallet managed by Kolo that pools funds from all users. This is our primary operational wallet used for processing withdrawals efficiently.
Your Deposit Address A unique blockchain address assigned to your account for receiving crypto. This is where you send funds when topping up your Kolo balance.
How Fund Consolidation Works
To operate efficiently and securely, Kolo periodically sweeps funds from individual deposit addresses to our Hot Wallet (omnibus account).
Here's what happens:
You deposit crypto to your personal deposit address
Your balance is credited to your Kolo account once the required number of blockchain confirmations is reached (this varies by network)
Periodically, our system consolidates funds from deposit addresses into the Hot Wallet
Your funds remain fully available in your Kolo balance at all times
Important: If you check your deposit address on a blockchain explorer and see a zero balance, don't worry — your funds have simply been moved to our secure Hot Wallet. Your Kolo balance remains unchanged and fully accessible.
Where Do Withdrawals Come From?
When you withdraw crypto, your funds may be sent from:
Source | When It's Used |
Hot Wallet | Most withdrawals — funds are sent from our omnibus account |
Your Deposit Address | In some cases, funds are sent directly from your deposit address without consolidation |
Direct Withdrawal from Deposit Address
In certain scenarios, we may process your withdrawal directly from your deposit address — for example, if you recently received a deposit and request an immediate withdrawal. In this case, your crypto is sent without first being sweeped into the omnibus account.
Hot Wallet Compliance Status
All Kolo Hot Wallets are verified and marked as "green" (licensed exchange) across major compliance and blockchain analytics services.
This means:
Funds sent from Kolo Hot Wallets are recognized as coming from a licensed, regulated entity
Receiving platforms (like exchanges) can verify the legitimacy of incoming transactions
Your withdrawals won't be flagged or delayed due to unknown source concerns
Frequently Asked Questions
My deposit address shows 0 balance on the blockchain. Where is my crypto?
My deposit address shows 0 balance on the blockchain. Where is my crypto?
Your funds have been consolidated into our secure Hot Wallet. This is normal operation. Your full balance is always available in your Kolo account — check the app to see your current balance.
Can I request a withdrawal from my deposit address instead of the Hot Wallet?
Can I request a withdrawal from my deposit address instead of the Hot Wallet?
In most cases, withdrawals are processed from the Hot Wallet for efficiency. However, if your funds haven't been consolidated yet, the withdrawal may come directly from your deposit address.
Is my crypto mixed with other users' funds?
Is my crypto mixed with other users' funds?
Yes, in the omnibus (Hot Wallet) model, funds are pooled together for operational efficiency. However, your balance is always tracked individually and remains fully yours.
Why does Kolo consolidate funds?
Why does Kolo consolidate funds?
Consolidation helps us:
Reduce transaction fees by batching operations
Improve withdrawal speed by maintaining liquidity in the Hot Wallet
I received "dirty crypto" from Kolo. Why?
I received "dirty crypto" from Kolo. Why?
First, double-check if the funds came from your own deposit address rather than our Hot Wallet. As explained above, in some cases withdrawals are processed directly from your deposit address — meaning the crypto you received may have originally been yours.
Keep in mind that different compliance tools use different evaluation frameworks. Kolo performs AML checks on all incoming and outgoing transactions. However, crypto that passes our compliance screening may be flagged differently by another platform — and vice versa.